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AMERICAN BEACON SELECT FUNDS
2026-09-23
Investment Objectives
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund’s investment objective is current income, with a secondary objective of capital appreciation.</span></div>
Fees and Expenses of the Fund
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>You may pay other fees, such as brokerage </b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">.</span></div>
Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)
0.0067
0.0067
Other Expenses are based on estimated expenses for the current fiscal year.
Example
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">$10,000 in the Fund for the time periods indicated and then </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">hold or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">redeem all of your shares at the end of those periods. The Example also assumes that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">based on these assumptions, whether you redeem or hold your shares, your costs would be:</span></div>
<div>
<table cellspacing="0" style="width:100%;cellspacing:0;padding-bottom:2pt;padding-top:0pt;margin-left:0pt;">
<tr style="height:1px;">
<td style="height:1px;width:82%"></td>
<td style="height:1px;width:9%"></td>
<td style="height:1px;width:9%"></td>
</tr>
<tr>
<td colspan="1" style="padding-top: 3pt; background-color: #0027BA; vertical-align: bottom; padding-bottom: 3pt">
<div style="background-color:#0027BA;padding-left:4pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"></div>
</td>
<td colspan="1" style="padding-top: 3pt; background-color: #0027BA; vertical-align: bottom; padding-bottom: 3pt">
<div style="background-color:#0027BA;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:7.02pt;color:#FFFFFF;;"><b>1
Year</b></span></div>
</td>
<td colspan="1" style="padding-top: 3pt; background-color: #0027BA; vertical-align: bottom; padding-bottom: 3pt">
<div style="background-color:#0027BA;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:7.02pt;color:#FFFFFF;;"><b>3 Years</b></span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:1pt solid #6E85DD;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"> </div>
</td>
<td colspan="1" style="border-bottom:1pt solid #6E85DD;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:3pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:1pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$68</span></div>
</td>
<td colspan="1" style="border-bottom:1pt solid #6E85DD;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:3pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:1pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$214</span></div>
</td>
</tr>
</table></div>
68
214
Portfolio Turnover
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund operating expenses or in the Example, affect the Fund’s performance. The Fund’s portfolio turnover rate for the Fund’s most recent fiscal year is not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">provided because the Fund had not commenced operations prior to the date of this Prospectus.</span></div>
Principal Investment Strategies
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">income-producing equity and equity-related investments. The Fund’s investments in equity and equity-related investments include U.S. common stocks, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">American Depositary Receipts (“ADRs”), U.S. dollar-denominated foreign stocks traded on U.S. exchanges, preferred stocks, convertible preferred stocks, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">real estate investment trusts (“REITs”). An income-producing investment is one that has issued dividend income to investors within the past year.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund’s investment sub-advisor, The London Company of Virginia, LLC (“The London Company”), emphasizes investments in profitable, financially stable, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">core companies that focus on generating high dividend income, are run by shareholder-oriented management with strong corporate governance practices </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and trade at reasonable valuations relative to their peers and market, which may include investments in growth companies. The London Company also seeks </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">companies with high return on capital, consistent free cash flow generation, predictability and stability. The London Company employs an investment process </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">with bottom-up, fundamental analysis and follows a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">sell discipline that considers criteria including: significant insider selling, excessive valuation, deterioration </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">in a company’s fundamentals, poor capital allocation by company management, or when a more attractive opportunity is identified. Additionally, The London </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Company will assess any investment that experiences significant negative performance to determine whether to sell the investment.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may invest in large- and mid-capitalization companies and will typically hold 30 to 40 issuers. The Fund may invest cash balances in other investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">companies, including a government money market fund advised by the Manager, with respect to which the Manager also earns a management fee.</span></div>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">There is no assurance that the Fund will achieve its investment objectives, and you could lose part or all of your investment in the Fund. </span>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Convertible Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The value of a convertible security</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">, including a convertible preferred security,</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> typically increases or decreases with the price of the underlying common stock. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">In general, a convertible security is subject to the market risks of stocks when the underlying stock’s price is high relative to the conversion price and is subject </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">to the market risks of debt securities when the underlying stock’s price is low relative to the conversion price. The general market risks of debt securities that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">are common to convertible securities include, but are not limited to, interest rate risk and credit risk. Many convertible securities have credit ratings that are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">below investment grade and are subject to the same risks as an investment in below investment grade debt securities (commonly known as “junk bonds”). </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Lower-rated debt securities may fluctuate more widely in price and yield than investment grade debt securities and may fall in price during times when the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">economy is weak or is expected to become weak. Convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">convertible security‘s investment value. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">In addition, to the extent the Fund invests in convertible securities issued by mid-capitalization companies, it will be </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">subject to the market risks of investing in such companies. The stocks of mid-capitalization companies may fluctuate more widely in price than the market as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">a whole and there may also be less trading in mid-capitalization stocks.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Convertible securities are sensitive to movement in interest rates.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Cybersecurity and Operational Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Operational risks arising from, among other problems, human errors, systems and technology disruptions or failures, or cybersecurity incidents may negatively </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">impact the Fund, its service providers and third-party fund distribution platforms, including the ability of shareholders to transact in the Fund’s shares, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">result in financial losses. Cybersecurity incidents may allow an unauthorized party to gain access to Fund assets, shareholder data, or proprietary information, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or cause the Fund or its service providers, as well as securities trading venues and their service providers, to suffer data corruption or lose operational </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">functionality. Cybersecurity incidents can result from deliberate attacks or unintentional events. It is not possible for the Fund or its service providers to identify </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">all of the operational risks that may affect the Fund or to develop processes and controls to completely eliminate or mitigate their occurrence or effects. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund cannot control the cybersecurity and operational plans and systems of its service providers, its counterparties or the issuers of securities in which the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund invests. The issuers of the Fund’s investments are likely to be dependent on computers for their operations and require ready access to their data and the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">internet to conduct their business. Thus, cybersecurity incidents could also affect issuers of the Fund’s investments, leading to significant loss of value.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Dividend Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">An issuer of stock held by the Fund may choose not to declare a dividend or the dividend rate might not remain at current levels or increase over time. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Dividend paying stocks might not experience the same level of earnings growth or capital appreciation as non-dividend paying stocks. Securities that pay </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">dividends may be sensitive to changes in interest rates and, as interest rates rise or fall, the prices of such securities may fall.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Equity Investments Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Equity
securities represent ownership interests in companies and are subject to investment risk, issuer risk and market risk. In general,
the values of stocks and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">other equity
securities fluctuate, and sometimes widely fluctuate, in response to changes in a company’s financial condition as well as
general market, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">economic and political
conditions and other factors. The Fund may experience a significant or complete loss on its investment in an equity security. In </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">addition,
stock prices may be particularly sensitive to rising interest rates, which increase borrowing costs and the costs of capital. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The
Fund may invest in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">following equity
securities, which may expose the Fund to the following additional risks:</span></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Common Stock Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> The value of a company’s common stock may fall as a result of factors affecting the company, companies in the same industry or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">company.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Depositary Receipts and/or U.S. Dollar-Denominated Foreign Stocks Traded on U.S. Exchanges Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Depositary receipts and U.S. dollar-denominated foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">stocks traded on U.S. exchanges are subject to certain of the risks associated with investing directly in foreign securities, including, but not limited to, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">currency exchange rate fluctuations, political and financial instability in the home country of a particular depositary receipt or foreign stock, less liquidity, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">more volatility, less government regulation and supervision and delays in transaction settlement.</span></div>
</td>
</tr>
</table></div><div>
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<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
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<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Real Estate Investment Trusts (“REITs”) Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Investments in REITs are subject to the risks associated with investing in the real estate industry, including, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">among other risks: adverse developments affecting the real estate industry; declines in real property values; changes in interest rates; defaults by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">mortgagors or other borrowers and tenants; lack of availability of mortgage funds or financing; extended vacancies of properties, especially during </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">economic downturns; casualty or condemnation losses; regulatory limitations on rents and operating expenses; and other governmental actions, such as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">changes to tax laws, zoning regulations or environmental regulations. REITs also are dependent upon the skills of their managers and are subject to heavy </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">cash flow dependency or self-liquidation. Regardless of where a REIT is organized or traded, its performance may be affected significantly by events in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">region where its properties are located. REITs may not be diversified geographically or by property or tenant type. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Domestic REITs could be adversely affected </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">by failure to qualify for tax-free “pass-through” of distributed net income and net realized gains under the Internal Revenue Code of 1986, as amended </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">(“Internal Revenue Code”), or to maintain their exemption from registration under the Investment Company Act of 1940, as amended (“Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Company Act”).</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> REITs typically incur fees that are separate from those incurred by the Fund. Accordingly, the Fund’s investment in REITs will result in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">layering of expenses such that shareholders will indirectly bear a proportionate share of the REITs’ operating expenses, in addition to paying Fund expenses. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The value of REIT common stock may decline when interest rates rise. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Publicly traded REITs may typically trade in wider spreads depending on market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">conditions.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> REITs tend to be small- to mid-capitalization securities and, as such, are subject to the risks of investing in small- to mid-capitalization securities. </span></div>
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<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Exchange-Traded Funds (“ETFs”) Risk</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> </span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">As an ETF, the Fund is subject to the following risks:</span></div><div>
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<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Authorized Participants Concentration Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> The Fund has a limited number of financial institutions that may act as authorized participants (i.e., large </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">institutions that have entered into agreements with the distributor of the Fund’s shares and are authorized to transact in Creation Units (described below) </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">with the Fund) (“Authorized Participants”). Only an Authorized Participant may transact in Creation Units directly with the Fund, and none of those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Authorized Participants is obligated to engage in creation and/or redemption transactions. To the extent they exit the business or are otherwise unable to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">proceed in creation and redemption transactions with the Fund and no other Authorized Participant is able to step forward to create or redeem shares, then </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">shares of the Fund may be more likely to trade at a premium or discount to net asset value (“NAV”) and possibly face trading halts or delisting. Authorized </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Participant concentration risk may be heightened for ETFs that invest in securities or instruments that have lower trading volumes.</span></div>
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<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Cash Transactions Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Like other ETFs, the Fund sells and redeems its shares primarily in large blocks called “Creation Units” and only to Authorized </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Participants. Unlike many other ETFs, however, the Fund expects to effect its creations and redemptions at least partially for cash, rather than in-kind </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities. Thus, an investment in the Fund may be less tax-efficient than an investment in other ETFs as the Fund may recognize a capital gain that it could </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">have avoided by making redemptions in-kind. As a result, the Fund may pay out higher capital gains distributions than ETFs that redeem in-kind. Further, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">paying redemption proceeds in cash rather than through in-kind delivery of portfolio securities may require the Fund to dispose of or sell portfolio </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investments to obtain the cash needed to distribute redemption proceeds at an inopportune time.</span></div>
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<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Premium/Discount Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> There may be times when the market price of the Fund’s shares is more than its NAV (at a premium) or less than its NAV (at a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">discount). As a result, shareholders of the Fund may pay more than NAV when purchasing shares and receive less than NAV when selling Fund shares. This </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">risk is heightened in times of market volatility or periods of steep market declines. In such market conditions, market or stop loss orders to sell Fund shares </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may be executed at prices well below NAV.</span></div>
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<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Secondary Market Trading Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Investors buying or selling shares in the secondary market will normally pay brokerage commissions, which are often a fixed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">amount and may be a significant proportional cost for investors buying or selling relatively small amounts of shares. In addition, such investors may incur </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the cost of the “spread” also known as the bid-ask spread, which is the difference between what investors are willing to pay for Fund shares (the “bid” </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">price) and the price at which they are willing to sell Fund shares (the “ask” price). The bid-ask spread varies over time based on, among other things, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">trading volume, market liquidity and market volatility. Trading in Fund shares may be halted by the Exchange (as defined below) because of market </span></div>
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<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">conditions or other reasons. If a trading halt occurs, a shareholder may temporarily be unable to purchase or sell shares of the Fund. In addition, although </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the Fund’s shares are listed on the Exchange, there can be no assurance that an active trading market for shares will develop or be maintained or that the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund’s shares will continue to be listed.</span></div>
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<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Focused Holdings Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Because the Fund may have a focused portfolio of fewer companies than other diversified funds, the increase or decrease of the value of a single investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may have a greater impact on the Fund’s net asset value (“NAV”) and total return when compared to other diversified funds.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Foreign Exposure Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Exposure to non-U.S. issuers carries potential risks not associated with exposure to U.S. issuers. Such risks may include, but are not limited to: (1) political and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">financial instability, (2) less liquidity, (3) greater volatility, and (4) different government regulation The Fund’s exposure to a foreign issuer may subject the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">to regulatory, political, currency, security, economic and other risks associated with that country, including tariffs, trade disputes and sanctions. Global </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">economic and financial markets have become increasingly interconnected and conditions (including recent volatility, terrorism, war and political instability) and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">events (including natural disasters) in one country, region or financial market may adversely impact issuers in a different country, region or financial market.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Growth Companies Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met or decrease, the prices of these stocks may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">decline, sometimes sharply, even if earnings showed an absolute increase. The Fund’s investments in growth companies may be more sensitive to company </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">earnings and more volatile than the market in general primarily because their stock prices are based heavily on future expectations. If an assessment of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">prospects for a company’s growth is incorrect, then the price of the company’s stock may fall or not approach the value placed on it. Growth company stocks </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may also lack the dividend yield that can cushion stock price declines in market downturns.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Investment Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">government agency.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> When you sell your shares of the Fund, they could be worth less than what you paid for them. Therefore, you may lose money by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investing in the Fund.</span></div>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">government agency.</span>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Issuer Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The value of, and/or the return generated by, a security may decline for a number of reasons that directly relate to the issuer, such as management </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">value of its assets.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Large-Capitalization Companies Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The securities of large market capitalization companies may underperform other segments of the market because such companies may be less responsive to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">competitive challenges and opportunities and, at times, such companies may be out of favor with investors. Many larger-capitalization companies also may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">unable to attain the high growth rates of successful smaller companies, especially during periods of economic expansion.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Market Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund is subject to the risk that the securities markets will move down, sometimes rapidly and unpredictably, based on overall economic conditions and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">other factors, which may negatively affect the Fund’s performance. The financial markets generally move in cycles, with periods of rising prices followed by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">periods of declining prices. The value of your investment may reflect these fluctuations. During a general downturn in the securities markets, multiple asset </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">classes may decline in value simultaneously. Even when certain securities prices have generally increased over time, there have been periods of price decreases </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">during those times, resulting in losses for investors, which are likely to occur again in the future.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Geopolitical and other events, including war, terrorism, trade disputes, pandemics, public health crises, natural disasters, and cybersecurity incidents, have led, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and in the future may continue to lead, to general instability in world economies and markets and reduced liquidity in securities, which may negatively affect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the value of your investment.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Policies established by the U.S. government and/or Federal Reserve and economic and political circumstances within the U.S. and abroad, such as inflation, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">changes in interest rates, recessions, changes in government leadership, a government’s inability to agree on a budget, high public debt, the threat or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">occurrence of a federal government shutdown and threats or the occurrence of a failure to increase the federal government’s debt limit, which could result in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">a default on the government’s obligations, may negatively affect investor and consumer confidence and may negatively impact financial markets and the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">broader economy, perhaps suddenly and to a significant degree.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Markets and market participants are increasingly reliant upon public and proprietary data and systems. Data or technology malfunctions and inaccuracies may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">disrupt markets and lead to negative consequences for market participants like the Fund. </span></div><div>
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<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Recent Market Events Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Both U.S. and international markets have experienced significant volatility in recent months and years. As a result of such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">volatility, investment returns may fluctuate significantly. Moreover, during periods of significant volatility, the risks discussed herein associated with an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investment in the Fund may be increased. National economies are substantially interconnected, as are global financial markets, which creates the possibility </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">that conditions in one country or region might adversely impact issuers in a different country or region. However, the interconnectedness of economies and/</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or markets may be changing, which may impact such economies and markets in ways that cannot be foreseen at this time.</span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Some countries, including the U.S., have adopted more protectionist trade policies, including trade tariffs and other trade barriers, which is a trend that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">appears to be continuing globally. The economies of all nations, including the U.S., are subject to the risks of slowing global economic growth, protectionist </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">trade policies, inflationary pressures, limits imposed by international trade and security agreements, political or economic dysfunction, poor consumer </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">sentiment, and reduced demand for goods due to fluctuating commodity prices and currency values, and these risks may create significant market volatility </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">in ways that cannot be foreseen at the present time. These economic risks could have a negative impact on the Fund’s investments.</span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The U.S. Federal Reserve and certain foreign central banks have started to lower interest rates, though economic or other factors could stop or reverse such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">changes. It is difficult to accurately predict the various economic and political factors that influence the pace at which interest rates might change, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or again reverse course. Changes in interest rates </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">could lead to an economic slowdown in the U.S. and abroad, significant market volatility and reduced liquidity in certain sectors of the market.</span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Tensions, war, or open conflict between nations, such as among the United States, Israel and Iran, between Russia and Ukraine, otherwise in the Middle </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">East or in eastern Asia could affect the economies of many nations, including the United States and may contribute to increased volatility and uncertainty in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the financial markets. The extent and duration of ongoing hostilities and related sanctions and the repercussions of such events cannot be predicted. Those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">events have presented and could continue to present material uncertainty and risk with respect to markets globally, including in the oil and gas markets and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">potentially other industries and sectors, and the performance of the Fund and its investments or operations could be negatively impacted. </span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Advancements in technology, including advanced development and increased regulation of artificial intelligence, may adversely impact market movements </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and liquidity. As artificial intelligence is used more widely, which can occur relatively rapidly, the profitability and growth of certain issuers and industries </span></div>
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<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may be negatively impacted in ways that cannot be foreseen and could adversely impact issuer and market performance. As a consequence, the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">holdings and its overall performance could be negatively impacted.</span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Global climate change may affect property and security values. Certain issuers, industries and regions may be adversely affected by the impacts of climate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">change in ways that cannot be foreseen. The impacts of legislation, regulation and international accords related to climate change, as well as any indirect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">consequences that may not be foreseen, may negatively impact certain issuers, industries and regions.</span></div>
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<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Mid-Capitalization Companies Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Investing in the securities of mid-capitalization companies involves greater risk and the possibility of greater price volatility, which at times can be rapid and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">unpredictable, than investing in larger-capitalization and more established companies. Since mid-capitalization companies may have narrower commercial </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">markets and more limited operating history, product lines, and managerial and financial resources than larger, more established companies, the securities of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">these companies may lack sufficient market liquidity, and they can be particularly sensitive to changes in overall economic conditions, interest rates, borrowing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">costs and earnings.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>New Fund Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund had not commenced operations prior to the date of this Prospectus. The current performance of the Fund may not represent how it is expected to, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or may, perform in the long term if and when it becomes larger and has fully implemented its investment strategies. Investment positions may have a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">disproportionate impact (negative or positive) on the Fund’s performance. The Fund may also require a period of time before it is invested in securities that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">meet its investment objectives and policies and achieves a representative portfolio composition. Fund performance may be lower or higher during this </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">“ramp-up” period, and may also be more volatile, than would be the case after the Fund is fully invested. Similarly, the Fund’s investment strategies may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">require a longer period of time to show returns that are representative of the strategies. As a new ETF, the Fund may experience low trading volume and wide </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">bid-ask spreads.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Other Investment Companies Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses charged by those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investment companies in addition to the Fund’s direct fees and expenses. To the extent the Fund invests in other investment companies that invest in equity </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities, fixed-income securities and/or foreign securities, or that track an index, the Fund is subject to the risks associated with the underlying investments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">held by the investment company or the index fluctuations to which the investment company is subject. The Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may invest in securities of an investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">company advised by the Manager and/or a sub-advisor, with respect to which the Manager and/or sub-advisor also receives a management or advisory fee. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Manager and/or sub-advisor has a financial incentive to invest in an affiliated rather than unaffiliated investment company and thus has a potential </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">conflict between its own financial interest and the Fund’s interest. The Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">will be subject to the risks associated with investments in those companies, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">including but not limited to the following:</span></div><div>
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<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Government Money Market Funds Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Investments in government money market funds are subject to interest rate risk, credit risk, and market risk. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Interest rate risk is the risk that rising interest rates could cause the value of such an investment to decline. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Credit risk is the risk that the issuer, guarantor </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or insurer of an obligation, or the counterparty to a transaction, may fail or become less able or unwilling, to make timely payment of interest or principal </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or otherwise honor its obligations, or that it may default completely.</span></div>
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<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Preferred Stock Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Preferred stocks are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">bond holders. In certain situations, an issuer may call or redeem its preferred stock or convert it to common stock. The market prices of preferred stocks are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">generally more sensitive to actual or perceived changes in the issuer’s financial condition or prospects than are the prices of debt securities.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Redemption Risk
</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Certain shareholders, including the Manager, the sub-advisor or an affiliate
of either, other funds or accounts advised by the Manager or the sub-advisor or an affiliate of either, or Authorized Participants or
other entities, may from time to time invest in the Fund, including to facilitate the Fund’s commencement of operations, and therefore
own a substantial amount of the Fund’s shares. There is no requirement that these shareholders maintain their investment in the
Fund, and there can be no assurance that any such shareholder would not redeem its investment, that the size of the Fund would be maintained
at such levels or that the Fund would continue to meet applicable listing requirements. There is a risk that such shareholders or that
the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of
time, which could have a significant negative impact on the Fund’s NAV, liquidity, brokerage costs, and expenses. To the extent
the Fund permits redemptions in cash, these redemptions may force the Fund to sell portfolio securities when it might not otherwise do
so. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment
strategy, and there is no guarantee that the Fund could maintain sufficient assets to continue operations, in which case the Fund may
be liquidated.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Securities Selection Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Securities selected for the Fund may not perform to expectations. This could result in the Fund’s underperformance compared to its performance index(es), or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">other funds with similar investment objectives or strategies.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Value Stocks Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Value stocks are subject to the risk that their intrinsic or full value may never be realized by the market, that a stock judged to be undervalued may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">appropriately priced, or that their prices may decline. Although value stocks tend to be inexpensive relative to their earnings, they can continue to be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">inexpensive for long periods of time. The Fund’s investments in value stocks seek to limit potential downside price risk over time; however, value stock prices </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">still may decline substantially. In addition, the Fund may produce more modest gains as a trade-off for this potentially lower risk. The Fund’s investment in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">value stocks could cause the Fund to underperform funds that use a growth or non-value approach to investing or have a broader investment style.</span></div>
Fund Performance
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Performance information for the Fund is not provided because the Fund had not commenced operations prior to the date of this Prospectus. Performance </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">information will be available in the Prospectus after the Fund has been in operation for one full calendar year. When available, performance for the Fund can </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">be accessed on the Fund’s website at </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">www.americanbeaconfunds.com</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Past performance (before and after taxes) is not necessarily an indication of how the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund will perform in the future.</span></div>
www.americanbeaconfunds.com
Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
1Pursuant to a Distribution Plan, the Fund may bear a Rule 12b-1 fee not to exceed 0.25% per year of the Fund’s average daily net assets. However, no such fee is currently paid by the Fund, and the Board of Trustees has not currently approved the commencement of any payments under the Distribution Plan.
2Other Expenses are based on estimated expenses for the current fiscal year.